Sec. 34.04.01.05. Eligible Activities

A. General Activities.The Trust may provide grants from the Fund to any eligible grantee for the:

(1) Acquisition of historic property;

(2) Rehabilitation of historic property; and

(3) Restoration of historic property.

B. Activities Limited to Certain Grantees.The Trust may provide grants from the Fund to an eligible grantee who is a nonprofit organization or a local jurisdiction for:

(1) Historic preservation education and promotion, including the research, survey, and evaluation of historic properties and the preparation of historic preservation planning documents and educational materials.

(2) Predevelopment costs relating to an ongoing or proposed project involving the rehabilitation or restoration of historic property, which costs shall be directly associated with the historic preservation nature of the project. The following provisions apply:

(a) Predevelopment costs may include the costs of studies, surveys, tests, plans and specifications, and reasonable fees, as determined by the Director, for architectural, design, engineering, and other special services;

(b) Predevelopment costs may not include attorneys' fees, appraisal fees, insurance premiums, or other costs not directly associated with the historic preservation nature of the project;

(c) The Trust may provide grants for predevelopment costs regardless of whether the construction costs of the rehabilitation or restoration project are being financed by the Trust.

C. Trust Expenditures.

(1) The Trust may directly expend moneys from the Fund in an amount up to 25 percent of the annual allocation to the Fund for the:

(a) Acquisition of historic property;

(b) Restoration or rehabilitation of historic properties owned by the Trust, which may include predevelopment costs directly related to restoration or rehabilitation such as the cost of studies, surveys, tests, plans and specifications, and architectural design, engineering, or other special services; and

(c) Activities set forth in §B(1) of this regulation.

(2) Trust expenditures under this section for acquisition, rehabilitation, or restoration shall be for use in accordance with the Trust's authorized purposes set forth in State Finance and Procurement Article, §5A-311, Annotated Code of Maryland, or for resale or lease by the Trust subject to appropriate preservation covenants.

(3) Trust expenditures under this section are not considered grants as defined in these regulations and are governed solely by the provisions of this section, Regulation .08, of this chapter, and any other regulation or provision of law to which this section or Regulation .08 of this chapter may specifically refer.